The Prague Post - 'We don't eat lithium': S. America longs for benefits of metal boon

EUR -
AED 4.177611
AFN 75.068136
ALL 93.600987
AMD 417.107118
AOA 1042.995504
ARS 1702.657162
AUD 1.627297
AWG 2.050163
AZN 1.932764
BAM 1.952383
BBD 2.291121
BDT 140.424257
BHD 0.428912
BIF 3395.13765
BMD 1.1374
BND 1.46749
BOB 12.802989
BRL 5.824508
BSD 1.137524
BTN 109.045484
BWP 15.618286
BYN 3.263318
BYR 22293.031134
BZD 2.287816
CAD 1.60612
CDF 2570.522996
CHF 0.931539
CLF 0.027236
CLP 1072.067528
CNY 7.702586
CNH 7.694872
COP 3654.919706
CRC 517.696306
CUC 1.1374
CUP 30.141088
CVE 110.754303
CZK 24.161552
DJF 202.138421
DKK 7.47528
DOP 66.195074
DZD 151.365465
EGP 57.679352
ERN 17.060993
ETB 181.955485
FJD 2.536685
FKP 0.853775
GBP 0.855728
GEL 2.985653
GGP 0.853775
GHS 13.244983
GIP 0.853775
GMD 84.16787
GNF 9969.307167
GTQ 8.679772
GYD 237.903081
HKD 8.919544
HNL 30.453898
HRK 7.536368
HTG 148.703038
HUF 359.679796
IDR 20553.719746
ILS 3.475662
IMP 0.853775
INR 109.006781
IQD 1489.993407
IRR 1563924.377948
ISK 142.800262
JEP 0.853775
JMD 179.965061
JOD 0.806427
JPY 186.185226
KES 147.236707
KGS 99.46526
KHR 4595.094055
KMF 493.630963
KRW 1667.325445
KWD 0.352838
KYD 0.947979
KZT 540.541674
LAK 25762.100186
LBP 101854.129895
LKR 382.510605
LRD 206.466444
LSL 19.14263
LTL 3.358445
LVL 0.688002
LYD 7.285047
MAD 10.648908
MDL 19.992804
MGA 4899.354451
MKD 61.42251
MMK 2388.014822
MNT 4084.995148
MOP 9.188422
MRU 45.553262
MUR 53.844427
MVR 17.572664
MWK 1975.662695
MXN 19.843596
MYR 4.649464
MZN 72.700866
NAD 19.142715
NGN 1552.356737
NIO 41.696814
NOK 10.993598
NPR 174.465685
NZD 1.968992
OMR 0.437331
PAB 1.137529
PEN 3.870002
PGK 4.998869
PHP 70.175848
PKR 316.026407
PLN 4.320532
PYG 6878.961798
QAR 4.144855
RON 5.233222
RSD 117.427424
RUB 88.742525
RWF 1667.427737
SAR 4.262619
SBD 9.191445
SCR 16.526612
SDG 683.005581
SEK 11.062826
SGD 1.468616
SLE 27.553518
SOS 650.021978
SRD 42.915236
STD 23541.874236
STN 24.96592
SVC 9.953581
SZL 19.142846
THB 38.242781
TJS 10.499841
TMT 3.980898
TND 3.370135
TRY 53.853935
TTD 7.725548
TWD 36.74415
TZS 2998.757331
UAH 51.087996
UGX 4271.581055
USD 1.1374
UYU 45.68006
UZS 13654.481435
VES 843.155877
VND 29930.669097
VUV 135.451013
WST 3.135038
XAF 654.836941
XAG 0.019449
XAU 0.000279
XCD 3.073879
XCG 2.050112
XDR 0.813729
XOF 654.004647
XPF 119.331742
YER 271.326574
ZAR 19.0571
ZMK 10237.960466
ZMW 21.255457
ZWL 366.24219
  • CMSC

    0.0250

    21.75

    +0.11%

  • BP

    -1.5100

    42.31

    -3.57%

  • CMSD

    0.0700

    22.05

    +0.32%

  • GSK

    0.6300

    51.98

    +1.21%

  • RIO

    0.7300

    91.95

    +0.79%

  • RBGPF

    -0.7300

    66

    -1.11%

  • BTI

    -0.1400

    60.82

    -0.23%

  • BCC

    0.3800

    78.22

    +0.49%

  • JRI

    -0.1500

    12.91

    -1.16%

  • BCE

    -0.0600

    21.24

    -0.28%

  • NGG

    -1.0900

    81.21

    -1.34%

  • AZN

    0.3800

    169.64

    +0.22%

  • VOD

    0.6500

    15.8

    +4.11%

  • RYCEF

    0.8000

    18.87

    +4.24%

  • RELX

    1.2400

    35.65

    +3.48%

'We don't eat lithium': S. America longs for benefits of metal boon
'We don't eat lithium': S. America longs for benefits of metal boon / Photo: Martin BERNETTI - AFP

'We don't eat lithium': S. America longs for benefits of metal boon

The turquoise glimmer of open-air pools contrasts sharply with the dazzling white of salt flats in Latin America's "lithium triangle," where hope resides for a better life fueled by a metal bonanza.

Text size:

A key component of batteries used in electric cars, demand has exploded for lithium -- the "white gold" found in Chile, Argentina and Bolivia in quantities larger than anywhere else in the world.

And as the world seeks to move away from fossil fuels, lithium production -- and prices -- have skyrocketed, as have the expectations of communities near lithium plants, many of whom live in poverty.

But there are growing concerns about the impact on groundwater sources in regions already prone to extended droughts, with recent evidence of tree and flamingo die-offs.

And there are scant signs to date of benefits trickling down.

"We don't eat lithium, nor batteries. We do drink water," said Veronica Chavez, 48, president of the Santuario de Tres Pozos Indigenous community near the town of Salinas Grandes in Argentina's lithium heartland.

A poster that meets visitors to Salinas Grandes reads: "No to lithium, yes to water and life."

Lithium extraction requires millions of liters of water per plant per day.

Unlike in Australia -- the world's top lithium producer that extracts the metal from rock -- in South America it is derived from salars, or salt flats, where saltwater containing the metal is brought from underground briny lakes to the surface to evaporate.

- Soaring prices -

About 56 percent of the world's 89 million tons of identified lithium resources are found in the South American triangle, according to the US Geological Survey (USGS).

The world average price rose from $5,700 per ton in November 2020 to $60,500 in September this year.

Chile hosts the westernmost corner of the lithium triangle in its Atacama desert, which contributed 26 percent of global production in 2021, according to the USGS.

The country started lithium extraction in 1984 and has been a leader in the field partly because of low rainfall levels and high solar radiation that speeds up the evaporation process.

But Chilean law has made it difficult for companies to gain concessions from the government since the dictatorship of Augusto Pinochet declared the metal a "strategic resource" for its potential use in nuclear bombs.

Only two companies have permits to exploit the metal -- Chile's SQM and American Albemarle, which pay up to 40 percent of their sales in tax.

In the first quarter of this year, lithium's contribution to the public coffers surpassed those of Chile's mainstay metal, copper, for the first time, according to government records.

Yet, the environmental costs are starting to stack up, and locals fear there is worse to come.

This year, a study in the journal Proceedings of the Royal Society B found a link between lithium mining and a decline in two flamingo species in the Salar de Atacama.

"The development of technologies to slow climate change has been identified as a global imperative. Nonetheless, such 'green' technologies can potentially have negative impacts on biodiversity," said the study.

In 2013, an inspection at the SQM site -- which reported using nearly 400,000 liters of water per hour in 2022 -- found that a third of carob trees in the area had died.

A later study pointed to water scarcity as a possible cause.

"We want to know, for sure, what has been the real impact of the extraction of groundwater," said Claudia Perez, 49, a resident of the nearby San Pedro river valley.

She was not against lithium, said Perez, provided there are measures to "minimize the negative impact on people."

- 'Leave us alone' -

Across the Andes in Argentina, the salt lakes of Jujuy host the world's second-largest lithium resources along with the neighboring provinces of Salta and Catamarca.

With few restrictions on extraction and a low tax of only 3.0 percent, Argentina has become the world's fourth-biggest lithium producer from two mines.

With dozens of new projects in the works with the involvement of US, Chinese, French, South Korean and local companies, Argentina has said it hopes to exceed Chilean production by 2030.

But not everyone is sold on the idea.

"It is not, as they say, that they (lithium companies) are going to save the planet... Rather it is us who have to give our lives to save the planet," said Chavez, of Santuario de Tres Pozos in Jujuy province.

A neighbor, 47-year-old street food seller Barbara Quipildor added fiercely: "I want them to leave us alone, in peace. I don't want lithium... My concern is the future of my children's children."

- Will locals benefit? -

About 300 kilometers (190 miles) north of Jujuy, the salar of Uyuni in Bolivia holds more lithium than anywhere else -- a quarter of global resources, according to the USGS.

Half of the residents in the region -- which is also rich in silver and tin -- live in poverty, household surveys show.

The country's former leftist president Evo Morales nationalized hydrocarbons and other resources such as lithium towards the start of his 2006-2019 mandate and vowed Bolivia would set the metal's global price.

In Rio Grande, a small town near the Yacimientos de Litio Bolivianos (YLB) lithium plant, Morales' plans were met with excitement.

In 2014 Donny Ali, a lawyer now aged 34, opened a hotel with the expectation of an economic boom.

He called it Lithium.

"We were expecting major industrial technological development and more than anything, better living conditions," he told AFP. "It didn't happen."

Hoping to boost the struggling lithium sector, the government opened it up to private hands in 2018, though domestic legislation has not yet denationalized the resource, and no private extraction has yet begun.

"Some think that Bolivia will 'miss the boat' of lithium," said economist Juan Carlos Zuleta. "I don’t think that’s going to happen."

The real question, he said, is: when the boat comes, "will lithium extraction benefit Bolivians?"

The three countries are now looking towards battery manufacturing -- possibly even building electric cars -- as a way to turn the natural lithium bounty into a modern-day industrial revolution.

"There is a concrete possibility for Latin America to become the next China," said Zuleta.

In the meantime, the Hotel Lithium stands empty.

H.Dolezal--TPP